What is Private Mortgage Lending?

A way to earn 10-12% on your IRA, Pension Plan, CD's or Savings

Private mortgage lending is when you loan money to someone to buy a property. You earn interest on the money you loan. You are the bank.

You can earn as much interest on a private mortgage loan as the market will allow as long as there is someone willing to pay it to you. It is possible to earn upwards of 10-15% from your savings or retirement account by making secured private loans to people. Very few people know about this investment strategy. Banks and investment firms actually prefer that you not know about this type of investment, because they want to keep your money. It has been a wealth strategy for rich people for many decades, but you do not have to be rich to do it. Our company will show you exactly how the process works.

With private mortgage loans you can grow your nest egg quickly. This is not a mortgage pool or a scam. This is a legitimate way to make a lot of money and is much safer than investing in the stock market or any other instrument. Your investment is secured by a mortgage, promissory note and hazard insurance. The loan to value ratio is always less than 80%, so if the market drops 20% your investment is covered. Your money is protected.

If you are currently investing you could probably do much better. You don't need a financial advisor to pocket all of your earnings. It doesn't cost you a dime to make a private loan secured by real estate. The borrower pays for everything. Stop earning a low return or losing money on your investments today. Don't put your money in the bank and earn 1%. Be the bank and earn 10-12%. What would happen if you were able to increase your earnings by 10% on a consistent basis. What if you had total control over your investments? With private loans you can have a consistent return that you can count on.

Why would anyone in their right mind pay 10-12% interest?

People who realize that the availability of money is sometimes more important than what the money costs are willing to pay higher than normal interest rates. When real estate markets slow down banks stop lending money. When banks stop lending money people will pay higher interest rates to own a home. People do not stop moving when the banks stop lending.

Our company works with private lenders to buy properties. Here's how it works. We find a property that we want to invest in. We decide what our exit strategy is going to be. Then, we contact one of our private lenders whose investment strategy matches up with our exit strategy. We borrow the money to purchase and repair the property. Then, we sell or rent the property out. We pay our lender based on the terms of our written agreement.

Here is how the numbers might work on a typical deal.

Jim loans our company $70,000 on a house that will be worth $100,000 after repairs. We agree to pay JIm 1% monthly interest payments for up to five years. That is 12% annually. We purchase and repair the property. We find someone to buy the property on a lease option agreement for $5,000 down and $1,000 per month with the option to buy the property for $100,000. Two years go by and our tenant/buyer gets a loan from the bank to buy the property and cashes us and our lender out. We end up making $300 a month for two years plus $30,000 from the sale of the house. The lender makes 12% for two years and has his money back to do what he wants with it.

Here is another example.

Dr Allen loans us $50,000 to buy a house that will be worth $100,000 after repairs. We agree to pay him his principal plus a flat rate of 10% interest within 6 months. There will be no payments made, just one lump sum when the property sells. We buy the house and put it right back on the market. The property sells within 2 months for $60,000. After paying back the loan we make $5,000 each.

Remember in both of these scenarios the lenders money is backed by the property and our company.

Why would we not just go to the bank and get the loan?

The problem with borrowing from the bank is that the best deals do not wait around for the bank to decide what to do. If it is a great deal it will be gone before the bank makes up its mind.

You can loan money directly from your savings or IRA. Your money grows tax deferred.

Here's what Jim and Dr Allen had to say

"I like earning 10% on my money" - Jim

"We enjoy the guaranteed 10% to grow our IRA" - Dr Allen

If you would like to start earning 10-12% like Jim & Dr Allen, please call 405-412-7800.

we buy ugly houses

we buy pretty houses

we sell houses

we lease houses

we buy vacant houses

we buy occupied houses

we buy raw land

we manage houses

we take over payments

we rent houses

we repair houses

we restore houses

we love houses